Fidelity's multi-manager team has dropped Sanjeev Shah's £2.4bn Fidelity Special Situations fund from its Select List of preferred funds.
The quarterly report, aimed at direct investors, lists about 90 funds the multi-manager team has picked for their long-term prospects.
In their February update to the list, multi-managers Eugene Philalithis, Ayesha Akbar and Stephen Gibson said they were concerned by the continued underperformance of Shah's fund.
“While we feel that the manager has a strong process and discipline around analysing and selecting stocks for his portfolios, the fund has performed less consistently than its peers over a rolling three-year period.
"We will continue to monitor the fund closely,” they said.
However, Special Situations was still a holding in two of the three Fidelity multi-manager funds as at the end of March. The £134m Multi-Manager Growth fund had a 4.2% position in Shah’s portfolio, while the £113m Multi-Manager Income fund had a 2.9% holding.
Shah’s fund suffered a difficult time in 2011 as positions in banks and miners hit returns.
Over the three years to 11 May the fund returned 22.9% against a UK All Companies sector average of 40.6%, ranking it in the bottom decile of the peer group. Over one year it fell 8.7% against an average 6% fall, according to Morningstar.
The other funds which failed to make the cut in the latest update to the list were:
- James Foster's Artemis Strategic Bond
- Nick Gartside's J.P. Morgan Strategic Bond
- Adam Cordery's Schroder Corporate Bond
- Guy de Blonay's Jupiter Financial Opportunities
- Philip Gibbs' Jupiter Absolute Return
- and Charlie Thomas' Jupiter Ecology, all on performance grounds.
- Baring Global Bond was also removed from the list following the departure of manager Colin Harte.
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